OP states that it was "an MIT-licensed open source project". It appears that Microsoft has lack of licensing understanding not only when it comes to copilot.
If they are punishing users just under an assumption that user is doing what they are doing (using someone's codebase with non-permissive licence, possibly unlawfully), it's just silly.
If they are punishing users just under an assumption that user is doing what they are doing (using someone's codebase with non-permissive licence, possibly unlawfully), it's just silly.